The competition watchdog intends to monitor a scrip offer to buy 40 per cent of Babcock & Brown Communities Group (BBC) launched by Prime Retirement and Aged Care Property Trust.
The trust's responsible entity, Australian Property Custodian Holdings Ltd, said Monday it had received a letter from the Australian Competition and Consumer Commission (ACCC).
"Prime trust has been invited to make a submission to the ACCC regarding the likely competitive effects of the proposed acquisition," it said.
"Following this submission the ACCC intends to undertake a public informal review."
Managing Director Philip Powell said Prime trust would comply with the request and provide full assistance to the ACCC review.
The trust launched its offer for part of BBC last week, bidding one of its units for each BBC stapled security.
The offer implies a price of 47.5 cents per BBC security, which would value the whole of the aged-care facilities operator at almost $307 million.
Prime trust said the buy may precede a potential full takeover of BBC.
"Prime trust sees this as a first step to a possible merger of the two entities which would create Australia's largest senior living class owner and operator," it reiterated on Monday.
